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en-usMon, 19 Mar 2018 07:37:42 -0400Mon, 19 Mar 2018 07:37:42 -0400The latest news on Consumer from Business Insiderhttp://static3.businessinsider.com/assets/images/bilogo-250x36-wide-rev.pngBusiness Insiderhttp://www.businessinsider.com
http://www.businessinsider.com/5-reasons-why-the-sluggish-robot-revolution-is-about-to-speed-up-2018-35 reasons why the sluggish robot revolution is about to speed uphttp://www.businessinsider.com/5-reasons-why-the-sluggish-robot-revolution-is-about-to-speed-up-2018-3
Sun, 18 Mar 2018 15:14:00 -0400K.R. Sanjiv
<p><strong><img src="http://static1.businessinsider.com/image/5aabeab689188d36128b4690-1333/gettyimages-932392272.jpg" alt="GettyImages 932392272" data-mce-source="Chris McGrath/Getty Image" /></strong></p>
<ul>
<li><strong>To date, the robot revolution has been slow-moving due to the amount of time and money required to develop industrial robots.</strong></li>
<li><strong>In order for robots to become fixtures in our everyday lives, they need to become affordable, socially accepted, and regulated legally.&nbsp;</strong></li>
<li><strong>It has been anticipated that the demand for industrial robots will triple in under a decade.</strong></li>
</ul>
<hr />
<p>For years, futurists have been warning anyone who will listen about the impending robot uprising. It's 2018 &mdash; so where are all the robots? Although we still don't have robot butlers in every house, small, single-function robots are everywhere. The real question is, where are all the <em>intelligent</em> robots?</p>
<p>Industries have been using robots to assist laborers for more than three decades. Every modern factory relies on robots in assembly lines, while artificial intelligence programmers rely on much smaller robots to help them design better code. We have plenty of robots; they just don't look like we thought they would.</p>
<p>Ask traditional laborers, and they will say that's a good thing &mdash; justified or not, there's been a fear that robots will sweep away many workers' jobs. But an objective look at reality suggests that isn't true. According to <a href="https://www.theatlantic.com/business/archive/2017/05/so-where-are-all-those-robots/528666/">research from The Atlantic</a>, the world doesn't have too many robots and not enough work. In fact, we have the opposite problem: too much work, and not enough high-level robots to help with it.</p>
<p>Investors aren't pumping the resources experts thought they would into advanced robotics, creating a gap in expectations of how robots will augment human productivity. So if the robot uprising hasn't put Rosie from "The Jetsons" in every home, and it hasn't taken all our paychecks, what's next?</p>
<p>In the immediate future, the slow pace of robot adoption will accelerate, starting with heavy industry. Over time, these advancements will spill over into the consumer space, but before it does, society will need to answer some difficult questions.</p>
<h2><strong>The sluggish robot revolution</strong></h2>
<p>Today's robot adoption hinges upon one thing: industrial return on investment. Science fiction and video games cover consumer robots far more often, but consumer robots don't deliver the immediate value industries would see.</p>
<p>Factories create ROI by maximizing their productivity and improving the quality of their products. These are deterministic tasks, which create natural opportunities for robots to integrate with and improve existing processes. Intelligent robots in factories can manage projects with higher variability at rapid speeds, freeing humans to step back and handle the more analysis-intensive jobs from a higher perspective. Combined with computer vision and artificial intelligence, these robots are already beginning to disrupt the industrial space. When this revolution of technology arrives in full, it has potential to change heavy industry in a way not seen since Henry Ford and his production line.</p>
<p>Outside big factories, where people live their everyday lives, cost-effective robots are on the horizon &mdash; but the horizon is a long way away. In areas such as agriculture and household tasks, robots must operate in uncontrolled environments. The costs and complexities of designing robots that can handle these more delicate tasks remain sky high. For now, these factors prevent even limited adoption of intelligent robots outside factory settings, because the ratio of cost to value doesn't add up. When advances in efficiency and technology begin to reduce those costs, consumer robots will inch closer to reality.</p>
<p>The most popular example of robots assisting consumers &mdash; self-driving cars &mdash; are still further away than the 2020 mark <a href="http://www.businessinsider.com/report-10-million-self-driving-cars-will-be-on-the-road-by-2020-2015-5-6">predicted a few years ago</a>. According to the <a href="https://blogs.wsj.com/digits/2015/04/22/self-driving-cars-by-2020-not-so-fast-consultants-say/">Wall Street Journal</a>, self-driving cars won't hit the roads until 2025, and <a href="https://www.stuff.co.nz/motoring/news/100004322/not-so-fast-with-the-selfdriving-cars-says-european-research">Mazda says</a> none of its self-driving technology in that time frame will allow humans to completely take their hands off the wheels.</p>
<p>Most people would enjoy a little robo-assistance in their lives, but for now, they'll have to let factories have most of it.</p>
<h2><strong>What needs to happen before consumer robots</strong></h2>
<p>The steep cost of robots in the present has not diminished demand for them in the future, however. Developers of AI and intelligent machines continue to make strides, and 2018 promises to be <a href="https://newsroom.cisco.com/feature-content?type=webcontent&amp;articleId=1902210">a year of big discoveries</a>.</p>
<p>Still, there are five major barriers to overcome before robots become mainstays in our living rooms:</p>
<h2><strong>1. Cost</strong></h2>
<p>Materials are expensive, but research and development (and the time of the people qualified to do those jobs) are even more so. Before our robot butlers learn to cook dinner, builders of robots will need to help price drops hit critical mass.</p>
<p><a href="https://ark-invest.com/research/industrial-robot-costs">According to ARK</a>, industrial robots could cost less than $11,000 per unit by 2025, while the Boston Consulting Group puts that number closer to $24,000. This is great news for industrial operations, which should enjoy a $33.8 billion market for industrial robots by 2025 &mdash; a major upgrade from <a href="https://www.recode.net/2017/6/22/15763106/industrial-robotics-market-triple-ten-years-collaborative-robots">today's $14 billion market</a>.</p>
<p>But for the average consumer, both of those numbers are still extremely pricey. Prices may be shrinking, but they will need to shrink more before robots become common household items.</p>
<h2><strong>2. Social barriers</strong></h2>
<p>Movies and TV shows like "The Terminator" movies have taught multiple generations that robots actively seek the destruction of humanity. That's not a great start for widespread trust of machine assistants.</p>
<p>Some of these concerns are justified, while others are more irrational. For example, some people might find metal exteriors making autonomous decisions to be uncomfortable or even creepy. A valid feeling, but not a real reason to delay robot advancements. Others have more serious concerns, pointing to problems with <a href="https://www.theguardian.com/science/head-quarters/2017/apr/24/why-are-we-reluctant-to-trust-robots">morality and ethics</a>. Self-driving cars will need to make quick decisions, and sometimes, they will have to <a href="https://www.usatoday.com/story/money/cars/2017/11/23/self-driving-cars-programmed-decide-who-dies-crash/891493001/">choose who lives and dies</a>.</p>
<p>Even if these new machines dramatically reduce the total number of road deaths, many people will remain uncomfortable leaving their fates in the hands of non-humans.</p>
<h2><strong>3. Legal regulations and unions</strong></h2>
<p>As covered by the <a href="https://www.technologyreview.com/s/527336/do-we-need-asimovs-laws/">MIT Technology Review</a>, Isaac Asimov's <a href="https://www.auburn.edu/~vestmon/robotics.html">three laws of robotics</a> don't cover all the nuances of modern robot concerns.</p>
<p>Self-driving cars have faced scrutiny in areas like California, where these machines are regularly tested by tech giants, but what about intelligent robots in other settings &mdash; like war? Former President Barack Obama faced <a href="https://www.theatlantic.com/international/archive/2016/08/obama-drone-morality/496433/">plenty of criticism</a> for his use of drones in the Middle East. Where will laws begin and end when robots have some level of autonomy?</p>
<p>In more practical, immediate terms, how will trade unions protect their workers from potential robot replacements, and how many limitations should these unions be allowed to place on new technology? Unions rely on collective bargaining to <a href="http://touchstoneblog.org.uk/2017/02/digitisation-future-work-means-unions/">share the benefits</a> of new advancements, but some in the union world have <a href="https://www.irishtimes.com/news/ireland/irish-news/unions-warn-against-threats-of-ai-and-brexit-to-worker-rights-1.3143498">vowed to oppose</a> any usage of advanced technology by their employers. As robots become more common, these questions of right and wrong will appear regularly in employment discourse.</p>
<h2><strong>4. Accountability</strong></h2>
<p>Should owners of robots be held accountable for the actions of their property? <a href="https://www.express.co.uk/news/science/892081/Killer-robots-Artificial-intelligence-stephen-hawking-Elon-Musk-artificial-intelligence-ai">One report</a> argues that no accountability would create no deterrence for future crimes, but if an owner argues a robot acted against his instructions, who is at fault?</p>
<p>Scientists heavily debate the definition of consciousness in non-humans. Some argue consciousness is a simple construct, defined by the ability to accept new information and process that information into perceptions and actions. Others say consciousness is unique to humans, with subtle nuances that separate us from machines. Defining robot responsibility will force humanity to define what "being human" really means.</p>
<h2><strong>5. Security and privacy</strong></h2>
<p>Unlike humans, robots can be hacked. Industrial robots today follow <a href="https://www.csbj.com/2017/09/15/manufacturers-prepare-to-battle-rogue-robots/">modified versions</a> of Asimov's three laws: read physical inputs accurately and use those inputs to act; don't execute self-harming logic; and, of course, don't hurt people. What happens if someone hacks the machine to remove one of those laws? A hacker could commit murder by allowing a robot to harm a human or destroy valuable equipment by removing the prohibition of self-harm.</p>
<p>Already, <a href="https://www.cnet.com/news/factory-robots-industry-machines-can-be-easily-hacked/">tests show</a> that many industrial robots operate under weak network security. The more responsibility we give robots, the more potential damage hackers and other security breakers can cause. To address these concerns, robots will need airtight security measures &mdash; another type of advancement that will require time to develop.</p>
<h2><strong>Looking to the robotic future</strong></h2>
<p>With the proliferation of the Internet of Things and sensors and the increasing maturity of AI and computer vision, some of these questions will demand answers soon. Industrial robots are spreading into retail, manufacturing, and logistics, and robots outside those spaces will use the experiences of the ones that came first to guide their paths. According to <a href="http://loupventures.com/industrial-robotics-outlook-2025/">research from Loup Ventures</a>, industrial robot demand will triple in under a decade. How long until consumer demand grows even higher?</p>
<p>As robots become integral parts of both work and home life, humans will be forced to answer some difficult questions. The future looks bright, but before we get there, we must acknowledge that robots will accompany us &mdash; and make the necessary preparations.</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/ergonomic-desk-accessories-keyboard-mouse-2018-3" >3 ergonomic upgrades for your workspace that'll take stress off your fingers and wrists</a></strong></p>
<p><a href="http://www.businessinsider.com/5-reasons-why-the-sluggish-robot-revolution-is-about-to-speed-up-2018-3#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/555-phone-number-tv-movies-telephone-exchange-names-ghostbusters-2018-3">Why 555 is always used for phone numbers on TV and in movies</a></p> http://www.businessinsider.com/why-volvo-service-care-is-bad-deal-consumers-2017-9Volvo just launched a new subscription service for its cars — but it's a bad deal for consumershttp://www.businessinsider.com/why-volvo-service-care-is-bad-deal-consumers-2017-9
Thu, 21 Sep 2017 11:39:59 -0400Matthew DeBord
<p><img src="http://static3.businessinsider.com/image/59c3ca6a9803c51d008b86d8-2400/213129carebyvolvothenewvolvoxc40.jpg" alt="Car by Volvo XC40" data-mce-source="Volvo" /></p><p></p>
<p><strong>&bull; Care by Volvo is a new premium subscription alternative to buying or leasing a vehicle.</strong></p>
<p><strong>&bull; It eliminates price negotiation.</strong></p>
<p><strong>&bull; No-haggle pricing is almost always a bad deal for consumers because it takes away one of their only negotiating advantages.</strong></p>
<p>Volvo is rolling out a new alternative to traditional car buying or leasing, called <a href="https://www.media.volvocars.com/global/en-gb/media/pressreleases/213101">Care by Volvo</a>.</p>
<p>It's essentially an elaborate rental arrangement, eliminating loan/leasing down payments and insurance requirements while adding a suite of concierge services. Volvo described it as a "premium subscription" and will offer it when a <a href="http://www.businessinsider.com/r-volvo-rolls-out-compact-suv-in-latest-upmarket-shift-under-geely-2017-9" target="_blank" rel="noopener noreferrer">new compact crossover SUV, the XC40</a>, hits the market. The vehicle was unveiled on Thursday in Italy.</p>
<p>In a statement, the Swedish-Chinese carmaker said that "Care by Volvo also removes the practice of price negotiations," pointing out that "[c]ustomer research shows that this is one of the elements of the car-buying process that customers dislike the most."</p>
<p>A no-haggle deal is nothing new; consumers have long&nbsp;agitated for it, and some automakers have responded, most famously Saturn in the 1980s.</p>
<h2>Why no-haggle is no good</h2>
<p><img src="http://static3.businessinsider.com/image/5900ff6c7522ca89008b6b38-1000/car-dealership.jpg" alt="car dealership" data-mce-source="KELENY / Shutterstock.com" /></p>
<p>But to anyone with experience buying or leasing vehicles, no-haggle is a non-starter. Yes, the buying/leasing process through a traditional dealership can be annoying and time-consuming. But by surrendering their ability to negotiate on price, consumers give away their biggest economic advantage when obtaining a set of wheels.</p>
<p>This matters because car payments are typically most peoples' second largest fixed monthly expense, after rents or mortgages. Lease and loan payments are determined by several factors, but price is the most important: what you end up paying begins with the big number on the sticker.</p>
<p>The manufacturer's suggested retail price (MSRP) is suggested for a reason &mdash; it's merely a baseline. Unpopular but perfectly good new vehicles &mdash; think Volkswagen's small sedans, for example, which have been losing out to SUVs &mdash; can be had for far less than MSRP. But you have to be willing to wheel and deal a bit.</p>
<p>It's hard to understand why this freaks people out so much. You don't even have to go to the dealership. You can simply call around to various dealers, focusing on the vehicle you want, and say something like, "I'd like to spend this much, what have you got?"</p>
<p>The dealer's mission in life is to sell cars, because if he or she doesn't, the dealership can't profit from generating financing and insurance opportunities, as well as servicing the car down the road and setting the customer up to buy more vehicles later.</p>
<h2>Bad deals</h2>
<p><img src="http://static6.businessinsider.com/image/545a40a8eab8eadc1b003f2f-2400/83916860.jpg" alt="car dealership" data-mce-source=" Justin Sullivan/Getty" /></p>
<p>No-haggle deals, in this well-understood framework, are always going to be bad for the consumer. They're also not so great for the dealer, who wants to be able to buck the MSRP when warranted. They're good for carmakers, because, for the most part, they collect their cut when an assembled vehicle is "purchased" by the dealership, often via what is called "floor plan" financing, whereby a carmaker extends credit to a dealer to create inventory.</p>
<p>So why do consumers want bad deals?</p>
<p>Fear, plain and simple. Car dealerships are intimidating, and even a cheap car will set a buyer back $20,000. A lot of folks are willing to sacrifice thousands of dollars in savings to avoid the unpleasant experience.</p>
<p>It doesn't help that most people buy or lease a car only every three-to-five years. The experience is newly unpleasant every time because it happens so infrequently.&nbsp;</p>
<p>As we shift our ownership priorities with new, younger generations of car buyers coming into the market, we're likely to see more services like Volvo's. The upshot is that buying or leasing a car will be more "frictionless."</p>
<p>Unfortunately, the friction of the older system is what made getting a good deal on a new car possible. Consumers should be careful before they trade that away.&nbsp;</p><p><strong>&nbsp;<a href="https://www.facebook.com/BusinessInsider.Cars/" >FOLLOW US on Facebook for more car and transportation content!</a></strong></p>
<p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/honda-odyssey-review-2017-7" >I drove my family around in the new Honda Odyssey and discovered why it's the greatest minivan ever made</a></strong></p>
<p><a href="http://www.businessinsider.com/why-volvo-service-care-is-bad-deal-consumers-2017-9#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/volvo-xc90-best-car-of-the-year-2015-12">The best car of the year — the Volvo XC90 </a></p> http://www.businessinsider.com/brexit-uk-consumer-economic-impact-2017-9Brexit has sent Britain's consumers down a slow, painful road away from prosperityhttp://www.businessinsider.com/brexit-uk-consumer-economic-impact-2017-9
Wed, 06 Sep 2017 02:00:00 -0400Will Martin
<p><strong><img src="http://static5.businessinsider.com/image/59af8f9d2488497afd48e352-1024/155024495203a230b7co.jpg" alt="slow box turtle" data-mce-source="Flickr / Audrey" data-link="https://www.flickr.com/photos/audreyjm529/155024495" /></strong></p>
<ul>
<li><strong>Britain's economy will not suffer any huge shock from Brexit, rather a slow decline.</strong></li>
<li><strong>A drop in consumption from regular Brits will be the key driver of that slowdown.</strong></li>
<li><strong>Inflation has risen, while wages have not, squeezing the average Brit hard.</strong></li>
<li><strong>The situation won't be getting better any time soon as inflation is expected to rise, and wage growth will stay weak.</strong></li>
</ul>
<p>LONDON &mdash; The British consumer has a problem.</p>
<p>Fourteen and a half months after the vote to leave the European Union, and the millions of UK consumers are feeling the economic impacts of the decision.</p>
<p>For a long time the powerhouse of the UK's economy, the appetite of the British consumer is now starting to stutter as the twin forces&nbsp;of rising inflation and stagnant wage growth squeeze the economy, forcing up&nbsp;the&nbsp;costs of&nbsp;living faster than the average pay packet.</p>
<p><span>Inflation &mdash; which pre-referendum had ticked along at less than half of 1% &mdash; has jumped thanks to the pound's depreciation against both the dollar and the euro after the vote. At the last reading, inflation was 2.6%, but many expect it to pass above 3% before the end of the year.</span></p>
<p><span>By contrast, wage growth was just 2.1% when measured as part of the Office for National Statistics' latest job market figures released in August.</span></p>
<p>Slowing consumer spending and overall household consumption are widely acknowledged to have been behind the slowdown in the wider British economy this year, which has pushed the UK to the bottom of the pile in terms of GDP growth in major economies.</p>
<p><span>"The key to our view of weakening UK growth this year was slowing household consumption," <a href="http://uk.businessinsider.com/the-decline-of-the-british-consumer-deutsche-bank-2017-9">Deutsche Bank's Oliver Harvey wrote in a note to clients this week.</a></span></p>
<p><span>Signs are that this is not going to change any time soon, and the UK is likely to experience a protracted slowdown, with the economy operating at a capacity much lower than might have been expected had Britain chosen to stay in the European Union for several years.</span></p>
<p><span><a href="http://uk.businessinsider.com/commerzbanks-peter-dixon-2017-8">In a recent interview with Business Insider, for example, Peter Dixon, chief UK economist at Commerzbank</a> argued that the economy should expect a l</span>oss of output compared to if Britain had stayed in the EU of more than 2% by end of 2018. This phenomenon is likely to continue over a much longer horizon, gradually sucking life from the economy.</p>
<h2>How is consumer spending slowing?</h2>
<p>Consumer goods are not just the obvious essentials like groceries, but expand to everything from cars to fridges to TVs to holidays. Basically, if you can buy it, it counts as a part of consumer spending.</p>
<p>The first facet of spending to suffer in a downturn is often the purchase of new cars. That's because while cars are an essential item for many people, their lives can be extended a lot more easily than many items.</p>
<p>Buying a new car is a huge outlay, while getting it fixed is pricey, but generally not prohibitively so. When times get tough, people tend to delay buying a new vehicle, which in turn shows up in official data about the number of new cars being registered.</p>
<p>Data released on Tuesday showed that the number of new cars registered privately fell sharply in August, continuing a trend that has been going for the last two or so years, but has intensified since the referendum.</p>
<p><span>"Private new car registrations fell 9.9% year-over-year in August, much worse than the 5.2% average decline over the previous twelve months," Samuel Tombs of Pantheon Macroeconomics wrote on Tuesday morning.</span></p>
<p><span>"Low consumer confidence and deteriorating affordability due to the weak pound suggest that the mid-2010s boom in car sales has run out of mileage," he added.</span></p>
<p><span>Here's the chart:</span></p>
<p><span><img src="http://static1.businessinsider.com/image/59af8f9d2488497afd48e353-855/screen shot 2017-09-05 at 145927.png" alt="Screen Shot 2017 09 05 at 14.59.27" data-mce-source="Pantheon Macroeconomics" /></span></p>
<p><span>Next to suffer is often bigger ticket household items like sofas and televisions where, like cars, their lifespan can be extended, so consumers are less inclined to replace them when times are tough. Deutsche Bank's analysis this week showed that both its key trackers of big ticket item spending are subdued right now, and could get worse, as the chart below shows:</span></p>
<p><span><img src="http://static2.businessinsider.com/image/59ad0d32ba785e663a590d58-835/screen shot 2017-09-04 at 082613.png" alt="Screen Shot 2017 09 04 at 08.26.13" data-mce-source="Deutsche Bank" /></span></p>
<p><span>Once they've stopped buying furniture and electronics, Brits will next sacrifice going on holiday. This has started to happen, although not to the extent that occurred during the financial crisis.</span></p>
<p><span>"UK tourist spending has tended to be well correlated to overall consumption, although it only makes up a small amount of overall demand. Monthly data on UK visits overseas track this well. Visits abroad have slowed much less than after the 2008 crisis, despite the weakness in the exchange rate, but are tracking lower," Deutsche's Harvey wrote.</span></p>
<h2><span>Things are set to get worse</span></h2>
<p><span>There are two reasons to suggest that the consumer slowdown which is dragging on the British economy is likely to get even worse. First of all, inflation &mdash; by almost all accounts &mdash; <a href="http://uk.businessinsider.com/brexit-uk-inflation-in-july-2017">has not yet hit a post-Brexit vote peak, and could extend past 3% later this year.</a> Even higher prices will squeeze consumers harder and likely worsen the consumer slowdown.</span></p>
<p><span>Secondly, wage growth &mdash; <a href="http://uk.businessinsider.com/what-will-brexit-do-to-household-finances-2017-5">despite the arguments of the Bank of England</a> &mdash; does not look like it will pick up any time soon, thanks largely</span><span style="font-weight: 400;"> to fundamental shifts in the way Britain's labour market functions.</span></p>
<p><span style="font-weight: 400;"><img src="http://static1.businessinsider.com/image/59af8f9d2488497afd48e354-1138/screen shot 2017-05-19 at 163756.png" alt="screen shot 2017 05 19 at 163756" data-mce-source="Oxford Economics" /></span></p>
<p><span style="font-weight: 400;">Getting a pay rise has become more difficult. Britain may have a lot of jobs &mdash; more than 32 million people in work to be precise &ndash; but&nbsp;few are getting above inflation salary increases.</span></p>
<p><span style="font-weight: 400;">For example, those on so-called zero-hours contracts&nbsp;may find it tough to get a pay rise when their&nbsp;boss is not even obliged to even give them&nbsp;any hours of work.</span></p>
<p><span style="font-weight: 400;">This is exacerbated by the fact that workers in the 21st century are far less likely to be part of a union than in, and as a result do not have the same power to force employers hands as they had during the later half of the 20th century.</span></p>
<p><span style="font-weight: 400;">There has also been another big, more recent shift, a shift towards the so-called "gig economy," a class of workers who are technically self-employed and paid per "gig," typically working in service-style roles like deliveries and taxi-driving, often without set hours and with work assigned via a smartphone app.</span></p>
<p><span style="font-weight: 400;">Gig economy workers tend to have a much greater deal of flexibility in the way they work, but in turn, <a href="http://uk.businessinsider.com/low-unemployment-wage-increases-gig-economy-2017-5">sacrifice many of the protections they would receive if they were to have formal employee status.</a></span></p>
<p><span style="font-weight: 400;">Boosting wages for gig economy workers can also be hard. Companies in the gig economy like Uber, Deliveroo, and Hassle set their rates centrally and given that workers are effectively their own bosses, asking for a raise and in turn stimulating wage growth that way is virtually impossible.</span></p>
<p><span style="font-weight: 400;">Until policymakers can work out how to get wages growing faster than inflation, the British consumer is likely to be a drag on the economy rather than a boost to it.</span></p><p><a href="http://www.businessinsider.com/brexit-uk-consumer-economic-impact-2017-9#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/bitcoin-pioneer-overstock-ceo-explains-long-standing-crypto-play-ravencoin-2018-2">Overstock CEO and bitcoin pioneer explains his long-standing crypto play and his philosophy on life</a></p> http://www.businessinsider.com/tim-hortons-sales-drop-after-reports-canadian-identity-crisis-2017-8Tim Hortons' Canadian sales drop following reports that the brand is losing its identity as a national icon (QSR)http://www.businessinsider.com/tim-hortons-sales-drop-after-reports-canadian-identity-crisis-2017-8
Wed, 02 Aug 2017 10:38:21 -0400Kate Taylor
<p><img style="float:right;" src="http://static6.businessinsider.com/image/5981da1a4528e667038b579d-1500/screen%20shot%202017-08-02%20at%2095525%20am.png" alt="Tim Hortons" data-mce-source="Tim Hortons"></p><p>The parent company of Burger King is trying to turn Canadian icon Tim Hortons into a global brand. However, sales in Canada are dropping — and franchisees say that the chain is losing its national identity. </p>
<p>On Wednesday, <a href="http://markets.businessinsider.com/stock/qsr-Quote">Restaurant Brands International </a>— the parent company of Burger King, Tim Hortons, and Popeyes — reported that Tim Hortons' Canadian sales fell 0.6% in the most recent quarter. This is the second quarter of negative sales at the chain, and the<a href="https://www.bloomberg.com/news/articles/2017-07-12/tim-hortons-operators-worry-chain-is-losing-its-canadian-culture"> fifth quarter in a row </a>of declining same-store sales. </p>
<p>The sales slump comes on the heels of news that a group of Canadian Tim Hortons franchisees filed a class-action suit against the company in June, claiming that Restaurant Brands had failed its obligations to local operators. </p>
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<p style=" margin:8px 0 0 0; padding:0 4px;"> <a href="https://instagram.com/p/BXSk2KBAGKN/" style=" color:#000; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none; word-wrap:break-word;" target="_top">Snacking this summer just got a lot s’more fun!</a>
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<p style="font-family:Arial,sans-serif;color:#c9c8cd; font-size:14px; line-height:17px; margin-bottom:0; margin-top:8px; overflow:hidden; padding:8px 0 7px; text-align:center; text-overflow:ellipsis; white-space:nowrap;">A post shared by Tim Hortons (@timhortons) on Aug 2, 2017 at 4:46am PDT on
<time style=" font-family:Arial,sans-serif; font-size:14px; line-height:17px;" datetime="2017-08-02T11:46:36+00:00">Aug 2, 2017 at 4:46am PDT</time></p>
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<p>Restaurant Brands CEO Daniel Schwartz said that the company did not want to speculate on the sales impact of "any of that," after an analyst asked if publicity from the franchisee dispute could be impacting Tim Hortons' Canadian sales. Restaurant Brands executives attributed the sales decline to promotions that failed to catch on, compared to last year's popular deals and new menu items. </p>
<p>"Our focus, our strategy of delivering a great guest experience and working collaboratively with our restaurant owners... none of that changes based on this other stuff," Schwartz said.</p>
<p>In July,<a href="https://www.bloomberg.com/news/articles/2017-07-12/tim-hortons-operators-worry-chain-is-losing-its-canadian-culture"> Bloomberg reported </a>that many Tim Hortons' franchisees felt that Restaurant Brands had turned locations into "profit centers," cutting local marketing that would typically be used to fund community hockey programs, camps for kids, and barbecues. </p>
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<p style=" margin:8px 0 0 0; padding:0 4px;"> <a href="https://instagram.com/p/BVwwgUMA94-/" style=" color:#000; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none; word-wrap:break-word;" target="_top">O Canada! Share a photo of your fave Tims cold drink using #SummerWithTims for a chance to win a $50 TimCard. Click the link in bio for more info.</a>
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<p style="font-family:Arial,sans-serif;color:#c9c8cd; font-size:14px; line-height:17px; margin-bottom:0; margin-top:8px; overflow:hidden; padding:8px 0 7px; text-align:center; text-overflow:ellipsis; white-space:nowrap;">A post shared by Tim Hortons (@timhortons) on Jun 25, 2017 at 5:02am PDT on
<time style=" font-family:Arial,sans-serif; font-size:14px; line-height:17px;" datetime="2017-06-25T12:02:55+00:00">Jun 25, 2017 at 5:02am PDT</time></p>
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<p>"You’ve got three or four generations that have been brought up with Tim Hortons," David Hughes, a Canadian franchisee, told Bloomberg. "We were involved in the community. Restaurant Brands, they're not interested in that. All those things that we are famous for — the kids' camps — those are the things that make us different than everyone else."</p>
<p>Franchisees also told Bloomberg they were unhappy that they had been forced to raise menu prices, due to the higher costs of supplies sold by Restaurant Brands. On Wednesday, at least some Tim Hortons Canadian locations announced new price increases, according to Nomura analyst Mark Kalinowski. </p>
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PSA: Tim Hortons price increase starts td! Plz remember employees arent responsible for it, plz dont take it out on us. We just work there! </p>— lina bae (@leenzxo) <a href="https://twitter.com/mims/statuses/892635368545243136">August 2, 2017</a>
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<p>While Restaurant Brands did not directly comment on the lawsuit or franchisee complaints, executives heavily emphasized the company's dedication to Canada. </p>
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<p style=" margin:8px 0 0 0; padding:0 4px;"> <a href="https://instagram.com/p/BW7cctxAVgs/" style=" color:#000; font-family:Arial,sans-serif; font-size:14px; font-style:normal; font-weight:normal; line-height:17px; text-decoration:none; word-wrap:break-word;" target="_top">A little taste of Vancouver Island</a>
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<time style=" font-family:Arial,sans-serif; font-size:14px; line-height:17px;" datetime="2017-07-24T12:10:42+00:00">Jul 24, 2017 at 5:10am PDT</time></p>
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<p>"Both our strong Canadian heritage and our community involvement are two of the most important attributes of Tim Hortons," <span>Schwartz said. </span></p>
<p><span>In late June, Tim Hortons launched a Canadian-centric marketing campaign to celebrate the country's 150th anniversary, serving poutine doughnuts and debuting cups covered with Canadian iconography. Schwartz also highlighted that the chain's<a href="http://www.timhortons.com/us/en/childrens-foundation/camp-day.php"> "Camp Day" </a>raised $13.7 million this year to send low-income kids to camp. </span></p>
<p>At the same time, Restaurant Brands is eager to turn Tim Hortons into a "global brand."</p>
<p>On Wednesday, the company announced it had signed an agreement to open Tim Hortons locations in Spain. Restaurant Brands has already announced similar agreements to expand the chain in Mexico, Great Britain and the Philippines.</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/how-wall-street-prodigy-daniel-schwartz-saved-burger-king-2017-6" >How a 36-year-old Wall Street prodigy saved Burger King</a></strong></p>
<p><a href="http://www.businessinsider.com/tim-hortons-sales-drop-after-reports-canadian-identity-crisis-2017-8#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/fast-food-restaurants-then-now-chain-menu-burger-king-mcdonalds-wendys-pizza-hut-dunkin-donuts-2017-7">Here’s what some of the biggest fast food restaurants used to look like</a></p> http://www.businessinsider.com/brandless-site-that-sells-everything-for-3-dollars-2017-7A new startup that sells everything from chef's knives to maple syrup for just $3 raised $50 million to be the 'Procter & Gamble for millennials'http://www.businessinsider.com/brandless-site-that-sells-everything-for-3-dollars-2017-7
Tue, 11 Jul 2017 09:43:03 -0400Dennis Green
<p><img style="float:right;" src="http://static6.businessinsider.com/image/59640f11d9fccd1b008b5770-2400/gfmacandcheesefinal.png" alt="Brandless" data-mce-source="Brandless" /></p><p>A new startup&nbsp;is making a bet that you don't care as much about the brands you consume as you think.</p>
<p><a href="https://brandless.com/">Brandless</a>, pitching itself as the&nbsp;"Procter &amp; Gamble for millennials," offers a host of essential consumer items for a single low price of $3. Instead of a big logo emblazoned on a product, the actual attributes of the product are listed on the package instead. Starting today, customers will find everything from dish soap to olive oil for sale on the site.</p>
<p>Brandless was created in 2016 by Sherpa Capital venture partner Tina Sharkey and entrepreneur Ido Leffler. The brand just closed a $35 million Series B round led by New Enterprise Associates, which brought the startup's total venture funding to $50 million. Investors include Cowboy Ventures, Redpoint Ventures, and Google Ventures</p>
<p><span>The idea, in a nutshell, is "democratizing access to awesome stuff at really fair and affordable pricing," according to Sharkey.</span></p>
<p>The name of Brandless' game is simplicity. There are only two real choices to make on Brandless' website: What do you want, and how much of it do you want?</p>
<p><img src="http://static1.businessinsider.com/image/59640f1ed9fccd1c008b5767-2400/cleaningbundlefinal.jpg" alt="Brandless" data-mce-source="Brandless" /></p>
<p>Everything in the launch collection, known as the "essentials," costs $3. Some of the food items are gluten-free, organic, and fair-trade, and all of them are all-natural. These were the qualities&nbsp;that founder&nbsp;<span>Sharkey</span>&nbsp;said were becoming "mainstream" in America, but were still hard to find for a fair price on the shelf.</p>
<p>Items like baking tools and chef's knifes are also on offer, and they still cost just $3. Some of the cheaper items are bundled together to reach a fair price.&nbsp;</p>
<p>The $3 price was chosen because the founders saw it as a middle point between value and quality, and they theorized that fixed pricing makes consumers feel at ease. They also said that Brandless&nbsp;is currently&nbsp;developing other lines at different fixed price points, but with the same value proposition as the "essentials" line.&nbsp;</p>
<p><span></span>All of Brandless' products are unique to the brand and private label, and they're conceived with manufacturing partners. They're&nbsp;cheaper becuase they're free of a "brand tax,"&nbsp;the founders said. When consumers buy from Brandless, they aren't paying more just for a name brand, similar to buying generic at the grocery store.&nbsp;</p>
<p><span>"It widens the door and the entry point for virtually everyone to be able to start to buy their values, share their values, and live and eat their values in a way that has been inaccessible and prohibitive for most people living on average wages in this country," Sharkey said.<img src="http://static6.businessinsider.com/image/59640f25d9fccd3a008b56af-2100/brandlessassortment.jpg" alt="Brandless" data-mce-source="Brandless" /></span></p>
<p><span>There's also only one choice for each individual item,&nbsp;which the founders say prevents shoppers from being "paralyzed" by choice.</span></p>
<p><span>The idea for the company came as the founders looked at how consumer behavior has changed, and how many name brands are struggling.</span></p>
<p><span>"The false narrative of modern consumption, that brands have created and products have created, was actually dying a fast and painful death," Sharkey&nbsp;said.</span></p>
<p>Brandless'&nbsp;model&nbsp;acts as the opposite of a model employed by ecommerce giants like Amazon and Jet.com, where the price varies considerably based on an algorithm and whether you choose free return shipping, respectively. Instead, everything is a reliable, fixed price regardless of when you're shopping and what experience you're looking for.</p>
<p><img src="http://static2.businessinsider.com/image/59640f2ad9fccdc2028b5699-2400/fullsizeoutput73c.jpeg" alt="Brandless" data-mce-source="Brandless" /></p>
<p>Brandless is also offering a subscription service called "B.More." The membership, which runs $36 a year, lowers the free shipping threshold from&nbsp;$72 to&nbsp;$48. For all other orders, a flat shipping rate of $9 is charged. The founders promised more benefits for B.More members, including a donated meal to the nonprofit Feeding America, in addition to the donation that is already made after each Brandless transaction.</p>
<p>Ultimately, Sharkey says that Brandless is about reclaiming one's identity through "the freedom to allow people to define themselves as who they are, and not what a brand or a society is projecting onto them."</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/carhartt-wearers-are-united-by-appreciation-for-work-2017-6" >How a 128-year-old brand that makes clothes for workers made the jump from cornfields to catwalks</a></strong></p>
<p><a href="http://www.businessinsider.com/brandless-site-that-sells-everything-for-3-dollars-2017-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/amazon-bought-whole-foods-nearly-14-billion-future-shopping-2017-6">Amazon just bought Whole Foods for nearly $14 billion — here's what the future of shopping could look like</a></p> http://www.businessinsider.com/capex-vs-consumer-spending-in-stock-market-2017-5Corporate America investing in itself is going to be what powers stocks higherhttp://www.businessinsider.com/capex-vs-consumer-spending-in-stock-market-2017-5
Mon, 29 May 2017 06:29:00 -0400Business Insider
<p><img style="float:right;" src="http://static4.businessinsider.com/image/5927073fdf1bf01b008b4c32-1828/ap692564576336.jpg" alt="JetBlue ribbon cutting" data-mce-source="AP/Aynsley Floyd" data-mce-caption="A ribbon cutting ceremony to celebrate jetBlue Airways move to historic Hangar 8 at Logan International Airport in Boston"></p><p>When it comes to boosting stock prices, few things are more important than the willingness of companies to invest in themselves.</p>
<p>With that in mind, bullish investors will be pleased to know that corporate capital expenditure is&nbsp;picking up.</p>
<p>Non-residential fixed investment — spending on things like machinery, factories, and commercial real estate — is up 3.1% on a year-over-year basis, according to&nbsp;<a href="https://www.strategasrp.com/">Strategas Research Partners</a>.</p>
<p>And while much has been made about the importance of consumer spending in the economy, Strategas argues that it's less important than capex&nbsp;when it comes to share prices.</p>
<p>Consumer staples and discretionary&nbsp;companies account for 21.6% of the market cap&nbsp;of the Standard &amp; Poor's 500. Industrial and technology companies, which would be the biggest beneficiaries of more business spending, make up about one-third of the S&amp;P 500, so they'll play a larger&nbsp;role in&nbsp;pushing the index higher.&nbsp;</p>
<p>"While the consumer, measured in economic terms, may be doing OK, index gains will be far more reliant on investment," Nicholas Bohnsack, co-founder and head of quantitative research at Strategas, wrote in a recent note.</p>
<p>Bohnsack notes that capex for industrials, in particular, has room to expand. Over the last decade or so, companies in the industry have spent less on&nbsp;internal investments than they did&nbsp;over the previous 10 years.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="http://static1.businessinsider.com/image/5926ec11df1bf0880e8b49b4-607/screen shot 2017-05-25 at 103634 am.png" alt="Strategas industrial capex" data-mce-source="Strategas Research Partners"></p>
<p>The possibility for higher&nbsp;capex in industrials may be the catalyst the sector needs to maintain the torrid gains it's seen since the US presidential election.</p>
<p>The group surged as much as 14% in the four months after the election on expectations that the $1 trillion of infrastructure spending proposed by President Donald Trump would boost bottom lines. But it's&nbsp;since struggled to break higher amid <a href="http://www.businessinsider.com/the-trump-trade-looks-dead-2017-4">skepticism that Trump will be able to implement his suggested policies</a> any time soon, if at all.</p>
<p>As for the tech sector, the potential for future gains is driven as much by companies in other industries sinking money into technological advancement as it is by capex spending within the sector. A large&nbsp;part of that will be driven by bigger paychecks&nbsp;for US workers, according to Wells Fargo Funds chief equity strategist John Manley.</p>
<p>"If managers see wages being forced higher, they're going to have to force productivity higher, because they don't think they can price it away,"&nbsp;<a href="http://www.businessinsider.com/wells-fargo-john-manley-interview-2017-5">Manley&nbsp;said in an interview</a> earlier this month. "That means they're going to spend more on technology, so they can pay their workers more because the workers can produce more."</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/stock-traders-are-more-resilient-than-ever-2017-5" >Big stock market shocks aren't scaring investors anymore</a></strong></p>
<p><a href="http://www.businessinsider.com/capex-vs-consumer-spending-in-stock-market-2017-5#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/tesla-model-3-best-worst-features-elon-musk-2018-2">The best and worst things about the Tesla Model 3</a></p> http://www.businessinsider.com/capex-vs-consumer-spending-in-stock-market-2017-5Corporate America investing in itself is going to be what powers stocks higherhttp://www.businessinsider.com/capex-vs-consumer-spending-in-stock-market-2017-5
Thu, 25 May 2017 23:09:00 -0400Joe Ciolli
<p><img style="float:right;" src="http://static4.businessinsider.com/image/5927073fdf1bf01b008b4c32-1828/ap692564576336.jpg" alt="JetBlue ribbon cutting" data-mce-source="AP/Aynsley Floyd" data-mce-caption="A ribbon cutting ceremony to celebrate jetBlue Airways move to historic Hangar 8 at Logan International Airport in Boston"></p><p>When it comes to boosting stock prices, few things are more important than the willingness of companies to invest in themselves.</p>
<p>With that in mind, bullish investors will be pleased to know that corporate capital expenditure is&nbsp;picking up.</p>
<p>Non-residential fixed investment — spending on things like machinery, factories, and commercial real estate — is up 3.1% on a year-over-year basis, according to&nbsp;<a href="https://www.strategasrp.com/">Strategas Research Partners</a>.</p>
<p>And while much has been made about the importance of consumer spending in the economy, Strategas argues that it's less important than capex&nbsp;when it comes to share prices.</p>
<p>Consumer staples and discretionary&nbsp;companies account for 21.6% of the market cap&nbsp;of the Standard &amp; Poor's 500. Industrial and technology companies, which would be the biggest beneficiaries of more business spending, make up about one-third of the S&amp;P 500, so they'll play a larger&nbsp;role in&nbsp;pushing the index higher.&nbsp;</p>
<p>"While the consumer, measured in economic terms, may be doing OK, index gains will be far more reliant on investment," Nicholas Bohnsack, co-founder and head of quantitative research at Strategas, wrote in a recent note.</p>
<p>Bohnsack notes that capex for industrials, in particular, has room to expand. Over the last decade or so, companies in the industry have spent less on&nbsp;internal investments than they did&nbsp;over the previous 10 years.</p>
<p><img style="display: block; margin-left: auto; margin-right: auto;" src="http://static1.businessinsider.com/image/5926ec11df1bf0880e8b49b4-607/screen shot 2017-05-25 at 103634 am.png" alt="Strategas industrial capex" data-mce-source="Strategas Research Partners"></p>
<p>The possibility for higher&nbsp;capex in industrials may be the catalyst the sector needs to maintain the torrid gains it's seen since the US presidential election.</p>
<p>The group surged as much as 14% in the four months after the election on expectations that the $1 trillion of infrastructure spending proposed by President Donald Trump would boost bottom lines. But it's&nbsp;since struggled to break higher amid <a href="http://www.businessinsider.com/the-trump-trade-looks-dead-2017-4">skepticism that Trump will be able to implement his suggested policies</a> any time soon, if at all.</p>
<p>As for the tech sector, the potential for future gains is driven as much by companies in other industries sinking money into technological advancement as it is by capex spending within the sector. A large&nbsp;part of that will be driven by bigger paychecks&nbsp;for US workers, according to Wells Fargo Funds chief equity strategist John Manley.</p>
<p>"If managers see wages being forced higher, they're going to have to force productivity higher, because they don't think they can price it away,"&nbsp;<a href="http://www.businessinsider.com/wells-fargo-john-manley-interview-2017-5">Manley&nbsp;said in an interview</a> earlier this month. "That means they're going to spend more on technology, so they can pay their workers more because the workers can produce more."</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/stock-traders-are-more-resilient-than-ever-2017-5" >Big stock market shocks aren't scaring investors anymore</a></strong></p>
<p><a href="http://www.businessinsider.com/capex-vs-consumer-spending-in-stock-market-2017-5#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/journalist-vegas-tenold-investigated-neo-nazis-for-six-years-2018-3">Neo-Nazi groups let a journalist in their meetings and rallies — here's what he saw</a></p> http://www.businessinsider.com/panasonic-countertop-induction-oven-2017-1Panasonic's countertop induction oven has dinner ready in a flashhttp://www.businessinsider.com/panasonic-countertop-induction-oven-2017-1
Thu, 05 Jan 2017 23:18:00 -0500Jenny McGrath
<p><span><img style="float:right;" src="http://static1.businessinsider.com/image/586eb747ee14b6507e8b5c82-2400/ap17004699936279.jpg" alt="Michael Moskowitz, president of Panasonic Canada" data-mce-source="Jae C. Hong/AP Photo" data-mce-caption="Michael Moskowitz, president of Panasonic Canada, introduces the new countertop induction oven during a news conference at CES International Wednesday, Jan. 4, 2017, in Las Vegas." data-link="http://www.apimages.com/metadata/Index/Gadget-Show-Panasonic/62a5b7b7bdbe49379e63c92e4b0357d2/1/0" />Nearly a year ago, Panasonic introduced its </span><a href="http://www.digitaltrends.com/home/panasonic-countertop-induction-oven/">Countertop Induction Oven</a><span>, a microwave-sized appliance that cooks like a full-size range. </span></p>
<p><span>It uses infrared heat and induction (hence the name) to quickly and evenly cook your food. </span></p>
<p><span>Getting a full meal of chicken cutlets and potatoes in 23 minutes &mdash; no preheating &mdash; is pretty impressive, and it&rsquo;s partly due to the oven&rsquo;s size. </span></p>
<p><span>It&rsquo;s about as wide as a microwave, though it has a lower profile.</span><span><br /></span></p>
<p>To show off the innovative tech, Panasonic took us on a ride on Vegas&rsquo;s High Roller ferris wheel.</p>
<p>While taking in views of Vegas, we watched the chicken go from uncooked to nicely browned on both sides. The chicken turned out super juicy and the potatoes were neither too firm nor tender. During the first part of the cooking phase, the window steamed up with condensation. When the infrared heating kicked on, the condensation cleared and the food started to brown.</p>
<p>There are nine buttons on the face, including grill, broil, and bake. There are six presets: Frozen pizza, toast, bagel, fish, fish with vegetables, and chicken with vegetables. You can make adjustments based on weight. It comes with a nonstick, dishwasher-safe grill pan for magnetic induction.</p>
<p>The company says you can get a meal for a family of four on the table in about a half hour. Part of the secret is in how you arrange the food: The chicken goes in the middle, with the vegetables on the outside. It wanted to focus on family-friendly meals first before branching out into other avenues. Panasonic paired with the Culinary Institute of America and All Recipes to create recipes tailored for the oven.</p>
<p>There are only 26 at the moment, so that means you&rsquo;ll have to be a bit adventurous in your cooking. Bacon, burgers, and bread pudding were all on the list of things Panasonic has made in the oven.</p>
<p>The $600 oven is available now from <a href="http://buy.geni.us/Proxy.ashx?TSID=4857&amp;GR_URL=https%3A%2F%2Fwww.amazon.com%2FPanasonic-NU-HX100S-Countertop-Induction-Technology%2Fdp%2FB01LXOGZJ0%3Fag%3Ddt-incontent-btn-20%26ascsubtag%3Dhome%3A1106627&amp;dtb=1">Amazon</a> and <a href="http://www.williams-sonoma.com/products/panasonic-counterop-induction-oven/">Williams Sonoma</a>. Can you get a full-size range for less? Yes, but the Panasonic is quick and efficient. You definitely can&rsquo;t make a turkey in there, or even a full chicken, but it is pretty revolutionary with what it can cook.</p><p><a href="http://www.businessinsider.com/panasonic-countertop-induction-oven-2017-1#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/rise-and-fall-of-hooters-airline-myrtle-beach-bob-brooks-atlanta-airplanes-2018-2">The rise and fall of Hooters Air — the airline that lost the 'breastaurant' $40 million</a></p> http://www.businessinsider.com/one-tool-retailers-can-use-to-make-customers-more-patient-2017-1One tool retailers can use to make customers more patienthttp://www.businessinsider.com/one-tool-retailers-can-use-to-make-customers-more-patient-2017-1
Thu, 05 Jan 2017 00:09:00 -0500Irene Huang
<p><img style="float:right;" src="http://static6.businessinsider.com/image/586d6daff10a9a98468b6478-2400/undefined" alt="A Coca-Cola mural." data-mce-source="Kevin Lamarque/Reuters" data-mce-caption="A Coca-Cola mural." data-link="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0BXZGT73O04&amp;SMLS=1&amp;RW=933&amp;RH=872#/SearchResult&amp;VBID=2C0BXZGT73O04&amp;SMLS=1&amp;RW=933&amp;RH=872&amp;POPUPPN=2&amp;POPUPIID=2C0408W35THX4" /></p><p>Nostalgia, a sentimental longing for the past, can put one in a wonderful state of mind.</p>
<p>It increases one&rsquo;s sense of being loved and protected; it can counteract loneliness or enhance self-esteem and induce optimism about the future.</p>
<p>Nostalgia as a psychological state has also been used to increase pro-social behaviour, and decrease anti-social acts.</p>
<p>Retailers, recognising its power, have long used nostalgia as a marketing tool.</p>
<p>You may remember recent promotions when McDonald&rsquo;s and Coca-Cola jointly gave away old-style Coca-Cola glass bottles, which became popular as collectors&rsquo; items among Singaporeans.</p>
<p>Many restaurants now offer free Wi-fi to make waiting times seem shorter, and self-service options which allow customers to place their orders while queueing create the impression they have already been seated.</p>
<p>It is notable that these are effects driven by the content of nostalgia and leverages on the &ldquo;feel good&rdquo; effect that nostalgic memories evoke.</p>
<p>But can the process of reminiscing affect (increase) consumer patience?</p>
<p>Recent studies, engaging a total of 1,227 US and Asian participants, suggest it can.</p>
<p>In one experiment, patrons who had been waiting between ten and 20 minutes to be seated were broken into two groups. One was given a folder containing a questionnaire and a sheet of grey paper with the phrase &ldquo;Nostalgia &ndash; Memories of our good old days&rdquo;.</p>
<p>The other control group received a blank piece of grey paper without the visual stimuli of nostalgia. The group with the nostalgia stimulation perceived that their waiting time was 5.8 minutes shorter than the patrons who had not been exposed to the nostalgia phrase (8.33 minutes).</p>
<p><img src="http://static2.businessinsider.com/image/586d6e37f10a9acc1c8b67f9-910/undefined" alt="Shoppers waiting in line to pay" data-mce-source="David Ramos/Getty Images" /></p>
<p><a href="https://www.scmp.com/lifestyle/travel-leisure/article/2018523/retro-taiwan-lunch-boxes-milk-nostalgia-slow-train-journeys"></a>In another study, one group was asked to recall an experience they were nostalgic for, the other a neutral experience. Both groups were then asked to choose between a smaller cash reward that was available immediately or a larger reward that was available only a month later. Results showed that those in the group who recalled nostalgic experiences were more willing to take the option of the delayed cash reward (93 per cent) versus the group that had recalled a neutral experience (65 per cent).</p>
<p>In other studies, participants who had been exposed to a nostalgic event (versus those placed in a non-nostalgic control event) rated the waiting time for a webpage to load as being shorter and signalled their increased willingness for an item they had bought online to be delivered via standard shipping rather than expedited shipping.&nbsp;</p>
<p>Studies confirmed that the effects of nostalgia on consumer patience are not a consequence of the emotional or social content of nostalgic experiences, but rather, result from the influence of nostalgia on how this content is processed.</p>
<p>But why does feeling nostalgic make customers more patient?</p>
<p>One argument is that the slow processing style generated from recalling a cherished event or an experience with a favourite person activates a general disposition to prolong and enjoy the reminiscence, which in turn disposes participants to be more tolerant in prolonging experiences in their current situation.</p>
<p>That is, nostalgia conditions participants to become more patient.</p>
<p>The studies highlight another important finding: both events &ndash; the nostalgic stimuli and the current event it affected &ndash; were unrelated. That is, the nostalgia that is activated in one domain has the ability to influence consumer behaviour in an unrelated domain. This understanding means retailers have a much wider berth in creating the nostalgia stimuli as they do not necessarily have to create a stimuli within the same domain.</p>
<p><img src="http://static3.businessinsider.com/image/579f78a688e4a7d9068bc120-2400/rtr2egi8.jpg" alt="Waiting Line" data-mce-source="REUTERS/Kim Kyung-Hoon" /></p>
<p>These results have important implications for retailers. From a marketing point of view, waiting time is negatively correlated with customer satisfaction. Yet it is often required, whether a customer is waiting to be seated, or in today&rsquo;s digital age, waiting for web pages to be downloaded, or for a product to be delivered after an online purchase.</p>
<p>Retailers can introduce nostalgic stimuli as a strategy to make the consumer more patient and tolerant of a longer waiting time or delayed gratification.</p>
<p>For example, a restaurant with long lines of customers waiting may benefit from playing nostalgic background music.</p>
<p>A telecommunications company that takes a long time to deliver new models of mobile phones may also benefit from using nostalgic themes in its promotion campaign.</p>
<p>Customers put in a nostalgic mood are more likely to prefer large delayed options to small options that are immediately available. Thus, marketers can benefit from using a nostalgic theme if they wish to encourage the purchase of options that are not available at that time. Supermarkets that want to keep customers in the aisles for longer can play nostalgic music or put up decorations that instil nostalgia.</p>
<p>In a nutshell, nostalgia is good for increasing the sense of self, for promoting social connectivity; it can also be very good for business.</p><p><a href="http://www.businessinsider.com/one-tool-retailers-can-use-to-make-customers-more-patient-2017-1#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/555-phone-number-tv-movies-telephone-exchange-names-ghostbusters-2018-3">Why 555 is always used for phone numbers on TV and in movies</a></p> http://www.businessinsider.com/amazon-has-a-big-counterfeiting-problem-2016-12Amazon has a big counterfeiting problem — and retailers are furioushttp://www.businessinsider.com/amazon-has-a-big-counterfeiting-problem-2016-12
Mon, 26 Dec 2016 10:45:00 -0500Helaine Olen
<p><span><img style="float:right;" src="http://static3.businessinsider.com/image/586127dff10a9a1c008b5402-2400/ap101020117863.jpg" alt="The Awards for the first-ever Snuggie&reg; Choice Film Awards in New York on Wednesday, October 20, 2010." data-mce-source="Victoria Will/AP Images for Allstar Products Group" data-mce-caption="The Awards for the first-ever Snuggie&reg; Choice Film Awards in New York on Wednesday, October 20, 2010." data-link="http://www.apimages.com/metadata/Index/Watchf-AP-Images-for-Allstar-Products-Group-A-C-/5d7423cc6f4c488696a9270a18d52815/21/0" />The Snuggie, that as-seen-on-TV cross between a hospital gown and a blanket, has attained pop-cultural omnipresence in recent years. </span></p>
<p><span>Now it&rsquo;s coming to a courtroom near you: Earlier this month, Allstar Marketing Group, the maker of the Snuggie, teamed up with two other companies to sue Amazon. </span></p>
<p><span>They claim the retailer &ldquo;knowingly and intentionally&rdquo; allowed a tsunami of faux fleeces, not to mention knockoffs of other products, to be sold on its site.</span></p>
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<p>The legal action by the three retailers (the others are Ideavillage Products, which makes compression sleeves, and Ontel Products, which makes Magic Tracks toy cars) is the latest salvo in an ongoing debate: How much responsibility do companies like Amazon, which are not only retailers but marketplaces for other sellers, have to ensure that the goods on their platforms are the real thing?&nbsp;&nbsp;</p>
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<p>The answer: Not as much as you probably think.</p>
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<p>Counterfeiters have been a part of the internet&rsquo;s firmament for about as long as things have been sold online. EBay&rsquo;s rating system for buyers and sellers <a href="http://www.repository.law.indiana.edu/cgi/viewcontent.cgi?article=1231&amp;context=fclj" target="_blank">originated</a>, in part, as an attempt to combat the sale of fake products. &ldquo;<a href="http://ag.nv.gov/uploadedFiles/agnvgov/Content/News/PR/Archive/1999pr.pdf" target="_blank">Fraud on the Internet is increasing as bargain hunters flock to online auction sites to trade in goods ranging from baseball cards to grand pianos</a>,&rdquo; read a report issued by the Nevada Attorney General&rsquo;s Office&mdash;in 1999.</p>
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<p>But the problem has become a lot worse. According to the <a href="https://www.oecd.org/industry/global-trade-in-fake-goods-worth-nearly-half-a-trillion-dollars-a-year.htm" target="_blank">Organization of Economic Cooperation and Development</a>, counterfeits were an almost $500 billion business in 2013. It&rsquo;s an issue for eBay, and such a problem at Alibaba, that the U.S. Office of the Trade Representative just put the Chinese retail giant on its &ldquo;<a href="http://www.wsj.com/articles/alibaba-lands-on-u-s-governments-notorious-markets-list-for-fakes-1482356081" target="_blank">Notorious Markets List</a>,&rdquo; citing the &ldquo;challenges&rdquo; trademark and copyright&ndash;holders face in enforcing their rights.</p>
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<p>But here in the United States, Amazon, the nation&rsquo;s largest online retailer, gets the most attention for the problem. The company&rsquo;s current woes seem to have originated in a 2014 decision by management to allow Chinese manufacturers to directly list their wares on Amazon Marketplace, where third-party sellers are responsible for about 40 percent of the company&rsquo;s sales. What happened next isn&rsquo;t shocking: According to the <a href="http://www.theglobalipcenter.com/wp-content/themes/gipc/map-index/assets/pdf/2016/GlobalCounterfeiting_Report.pdf" target="_blank">U.S. Chamber of Commerce</a>, 72 percent of counterfeits confiscated by law enforcement authorities in the United States, European Union, and Japan between 2010 and 2014 originated in China.</p>
<p>And indeed, the number of counterfeits and knockoffs available for sale on Amazon surged. No product appeared immune. World-famous brands complained. So did craftsmen. <a href="http://christopher-beikmann.pixels.com/" target="_blank">Christopher Beikmann</a>, a New Mexico&ndash;based designer who markets iPhone covers decorated with his art, told me that at about that time he began to see products that looked just like his $39.95 phone cases going for as low as $7.95. His sales plunged.</p>
<p>&ldquo;I literally went from doing six figures a year in sales to doing a third of that,&rdquo; he said. When we spoke earlier this week, he said he no longer sells on Amazon, but counterfeit versions of his designs remain available on the site. Jamie Whaley, the creator of Bed Band, a gizmo that keeps fitted sheets actually fitted on a bed, also took a revenue hit from knockoffs. &ldquo;When [the counterfeits] showed up, our sales promptly dropped in half,&rdquo; she told me.</p>
<p><img src="http://static3.businessinsider.com/image/5821c64f46e27a925a8b48bc-910/gettyimages-618585750 (1).jpg" alt="Jeff Bezos" data-mce-source="Getty Images" data-link="http://www.gettyimages.co.uk/license/618585750" /></p>
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<p>When it comes to its marketplace, the courts usually consider Amazon a facilitator, a platform for consumers to connect with merchants, not unlike how Uber views itself as a platform connecting riders with drivers. Amazon&rsquo;s legal responsibilities include removing fraudulent listings when they are brought to their attention. As a result, chasing down frauds became a time-consuming and all-but-Sisyphean task for many legitimate sellers and copyright and trademark holders. Proving the fraud was on them, not Amazon. And the frequent response of a busted counterfeiter isn&rsquo;t to stop selling the product but to reopen for business under another account on Amazon, forcing the aggrieved party to start the process over.</p>
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<p>No surprise, the manufacturer of Snuggies and other as-seen-on-TV products are hardly alone in their complaints.&nbsp; A Facebook group for artists called &ldquo;Who Stole My Images&rdquo; has just under 800 members, many of whom post regularly about finding their designs selling on Amazon for bargain-basement prices. International brands are also aghast. <a href="http://www.fool.com/investing/2016/07/27/amazoncoms-latest-challenges-come-to-light-counter.aspx" target="_blank">Birkenstock&rsquo;s CEO</a> David Kahan announced this past summer that the company would cease listing its goods on Amazon beginning in 2017, after throwing up its hands at the impossibility of ensuring the legitimacy of products bearing the company name on the site.</p>
<p>&ldquo;Policing this activity internally and in partnership with Amazon.com has proven impossible,&rdquo; he wrote in a memo obtained by a number of media outlets. &ldquo;If they [customers] see any Birkenstock product on Amazon.com, we cannot in any way confirm its validity or verify its quality. It may be counterfeit. It may be stolen.&rdquo; (Birkenstock did not respond to a request for comment.)</p>
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<p>Bringing further insult to legitimate manufacturers: Many fake items are poorly made and fall apart quickly. They cost less because they&rsquo;re made more cheaply. And because many buyers don&rsquo;t realize they&rsquo;ve been the victims of a counterfeiting scam, they blame the company and sometimes post bad reviews online. Fraudsters don&rsquo;t only cost the copyright-holder sales of the product; they also harm future sales by eroding trust in brands. Jennifer Labit, the founder and chief executive officer of Cotton Babies, wrote a <a href="http://jenniferlabit.com/2016/07/21/counterfeit-baby-products-sold-at-amazon/" target="_blank">blog post</a> this summer about a product imitating her Flip diaper cover. It&rsquo;s &ldquo;made wrong, using the wrong manufacturing process and materials,&rdquo; she wrote, but once it falls apart, consumers &ldquo;are posting online about how awful this diaper cover is and you&rsquo;re convinced nobody should use Flip covers.&rdquo;</p>
<p><img src="http://static1.businessinsider.com/image/5845a04ce02ba75d658b67b0-932/undefined" alt="amazon box" data-mce-source="Kevork Djansezian / Getty Images" /></p>
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<p>It&rsquo;s not enough to beg consumers to be suspicious of cheap items&mdash;though of course it&rsquo;s wise to browse Amazon with your knockoff radar turned on. But even careful customers are vulnerable to receiving a fake: The Snuggie suit alleges that real and fake goods got co-mingled at the retail behemoth&rsquo;s fulfillment centers. (Amazon wouldn&rsquo;t discuss the allegations contained in the case, writing in an email, &ldquo;We won&rsquo;t be commenting due to pending litigation.&rdquo;)</p>
<p>It&rsquo;s unclear how successful Snuggie and the other companies involved in the legal fight will ultimately be. Because regulations appear to provide the listing merchant a safe harbor, the courts have ruled, sometimes unhappily, for Amazon and other internet platforms in similar cases. &ldquo;<a href="http://docketreport.blogspot.com/2015/11/amazon-not-liable-for-infringement-of.html" target="_blank">There is no doubt that we now live in a time where the law lags behind technology</a>,&rdquo; Judge Ricardo Martinez, the federal judge who presided over an unsuccessful case brought by the manufacturer of pillow cases designed to look like dinosaurs and other animals, wrote last year. Martinez added that he would like to see Congress address the matter.</p>
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<p>Good luck with that. When Washington did attempt to step in, the internet giants were less than enthusiastic. A bill introduced in the 2011&ndash;2012 session of Congress would have hopefully cracked down on everything from pirated copies of Hollywood films to websites carrying counterfeit good. It foundered on a wave of opposition from companies like <a href="http://www.ebaymainstreet.com/news-events/ebay-opposes-troublesome-piracy-legislation" target="_blank">eBay</a> and <a href="https://www.cnet.com/news/protests-lead-to-weakening-support-for-protect-ip-sopa/" target="_blank">Amazon</a>.</p>
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<p>As a result, some sellers are pinning their hopes on the thought that business imperatives will force Amazon and other retailers to take action. And here we might experience a bit of luck. Counterfeits are now giving Amazon such a black eye that the company is finally starting to improve. Whaley says she believes Amazon is being &ldquo;more proactive&rdquo; in combatting the problem, And last month, <a href="https://www.securingindustry.com/food-and-beverage/amazon-moves-to-stricter-product-registration-to-fight-fakes-/s104/a3060/#.WFwi8MZ39yZ" target="_blank">Bloomberg</a> reported on a new initiative that would begin to ask large companies to register with the site even if they do not use it to sell their brands. If they sign up, Amazon will insist third-party sellers demonstrate the companies are allowing them to sell their wares on the site. Here&rsquo;s hoping Snuggies are among the products on the list.</p>
</div><p><a href="http://www.businessinsider.com/amazon-has-a-big-counterfeiting-problem-2016-12#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/555-phone-number-tv-movies-telephone-exchange-names-ghostbusters-2018-3">Why 555 is always used for phone numbers on TV and in movies</a></p> http://www.businessinsider.com/credit-card-issuance-climbs-to-pre-financial-crisis-levels-2016-10Banks are giving away credit cards like it's 2008http://www.businessinsider.com/credit-card-issuance-climbs-to-pre-financial-crisis-levels-2016-10
Sat, 22 Oct 2016 12:34:00 -0400Business Insider
<p><img style="float:right;" src="http://static4.businessinsider.com/image/56560c6684307657008b58a7-1118/rainy-day-shopping-bags.jpg" alt="rainy day shopping bags" data-mce-source="Scott Barbour / Getty Images" /></p><p>Banks are giving away credit cards at a rate.</p>
<p>Bank of America Merrill Lynch&nbsp;<a href="http://www.businessinsider.com/bank-of-america-q3-earnings-2016-10">reported strong third-quarter earnings</a>&nbsp;on Monday, and buried in the earnings release was this factoid: New US consumer credit card issuance hit the highest level since 2008.</p>
<p>The bank issued 1.3 million credit cards during the three-month period, with total credit card loans for the period averaging $88.2 billion in the US and a further $9.7 billion outside the US.</p>
<p>There was a similar story at Citigroup, where credit card loans hit $147.8 billion, up 13% from a year ago.</p>
<p>And at JPMorgan, a whopping 2.7 million new accounts were opened during the third quarter, sending JPMorgan's credit card balance to $133.4 billion, up 5% from a year ago.</p>
<p>Jamie Dimon, JPMorgan CEO, even mentioned the bank's Sapphire Reserve, <a href="http://www.businessinsider.com/chase-sapphire-reserve-credit-card-what-you-need-to-know-2016-9">the credit card people have been going nuts for</a>, in his earnings comments.</p>
<p>The boom in credit cards is something we've been tracking for a while at Business Insider. In August, the Liberty Street Economics blog at the Federal Reserve Bank of New York published a study on <a href="http://libertystreeteconomics.newyorkfed.org/2016/08/just-released-recent-developments-in-consumer-credit-card-borrowing.html#.V6n3s5MrJTY">recent developments in consumer credit card borrowing</a> that highlighted booming new card issuance.</p>
<p>The increase has <a href="http://www.businessinsider.com/subprime-borrowers-getting-credit-cards-2016-8">been driven by those with lower credit scores</a>, though these people were getting historically lower credit limits.</p>
<p>"Although new cards are disproportionately issued to lower credit score borrowers, the overall extension of new credit, measured by increases in aggregate credit limits, continues to go overwhelmingly to those with credit scores above 720," the researchers wrote.</p>
<p>The business case for growing credit card balances is clear.</p>
<p>Bank of America said in its earnings release that the yield for US credit cards stood at 9.3% in the third quarter, making it a highly profitable business.</p>
<p>But of course, there are risks involved, too.</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/real-wage-growth-new-york-fed-research-2016-9" >A reminder that you really need to get as many raises as you can before you turn 40</a></strong></p>
<p><a href="http://www.businessinsider.com/credit-card-issuance-climbs-to-pre-financial-crisis-levels-2016-10#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/what-jim-chanos-is-tired-of-hearing-in-this-bull-market-2018-2">Here's what Jim Chanos is tired of hearing about from Wall Street and Silicon Valley</a></p> http://www.businessinsider.com/security-identification-facebook-geotagging-2016-10This is how you're compromising your identity on Facebookhttp://www.businessinsider.com/security-identification-facebook-geotagging-2016-10
Mon, 17 Oct 2016 14:32:20 -0400Eames Yates
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<script src="https://apis.google.com/js/platform.js"></script><div class="g-ytsubscribe" data-channel="BusinessInsider" data-layout="full" data-count="default"></div>
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<p>The threat of identity theft is very real on the internet, especially on social media. </p>
<p><span style="line-height: 1.5em;">Adam Levin, author of </span><a href="http://www.amazon.com/Swiped-Yourself-Scammers-Phishers-Identity/dp/1610395875/ref=sr_1_1?ie=UTF8&amp;qid=1448401646&amp;sr=8-1&amp;keywords=swiped">"Swiped: How to Protect Yourself in a World Full of Scammers, Phishers, and Identity Thieves"</a><span style="line-height: 1.5em;"> explains what you can do to protect yourself. </span></p>
<p><em>Produced by <a href="http://www.businessinsider.com/author/eames-yates">Eames Yates</a><br></em></p>
<p><strong>Follow BI Video:</strong> <a href="https://www.facebook.com/BusinessInsider.Video">On Facebook</a></p><p><a href="http://www.businessinsider.com/security-identification-facebook-geotagging-2016-10#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/credit-card-issuance-climbs-to-pre-financial-crisis-levels-2016-10Banks are giving away credit cards like it's 2008http://www.businessinsider.com/credit-card-issuance-climbs-to-pre-financial-crisis-levels-2016-10
Mon, 17 Oct 2016 10:15:34 -0400Matt Turner
<p><img style="float:right;" src="http://static4.businessinsider.com/image/56560c6684307657008b58a7-1118/rainy-day-shopping-bags.jpg" alt="rainy day shopping bags" data-mce-source="Scott Barbour / Getty Images" /></p><p>Banks are giving away credit cards at a rate.</p>
<p>Bank of America Merrill Lynch&nbsp;<a href="http://www.businessinsider.com/bank-of-america-q3-earnings-2016-10">reported strong third-quarter earnings</a>&nbsp;on Monday, and buried in the earnings release was this factoid: New US consumer credit card issuance hit the highest level since 2008.</p>
<p>The bank issued 1.3 million credit cards during the three-month period, with total credit card loans for the period averaging $88.2 billion in the US and a further $9.7 billion outside the US.</p>
<p>There was a similar story at Citigroup, where credit card loans hit $147.8 billion, up 13% from a year ago.</p>
<p>And at JPMorgan, a whopping 2.7 million new accounts were opened during the third quarter, sending JPMorgan's credit card balance to $133.4 billion, up 5% from a year ago.</p>
<p>Jamie Dimon, JPMorgan CEO, even mentioned the bank's Sapphire Reserve, <a href="http://www.businessinsider.com/chase-sapphire-reserve-credit-card-what-you-need-to-know-2016-9">the credit card people have been going nuts for</a>, in his earnings comments.</p>
<p>The boom in credit cards is something we've been tracking for a while at Business Insider. In August, the Liberty Street Economics blog at the Federal Reserve Bank of New York published a study on <a href="http://libertystreeteconomics.newyorkfed.org/2016/08/just-released-recent-developments-in-consumer-credit-card-borrowing.html#.V6n3s5MrJTY">recent developments in consumer credit card borrowing</a> that highlighted booming new card issuance.</p>
<p>The increase has <a href="http://www.businessinsider.com/subprime-borrowers-getting-credit-cards-2016-8">been driven by those with lower credit scores</a>, though these people were getting historically lower credit limits.</p>
<p>"Although new cards are disproportionately issued to lower credit score borrowers, the overall extension of new credit, measured by increases in aggregate credit limits, continues to go overwhelmingly to those with credit scores above 720," the researchers wrote.</p>
<p>The business case for growing credit card balances is clear.</p>
<p>Bank of America said in its earnings release that the yield for US credit cards stood at 9.3% in the third quarter, making it a highly profitable business.</p>
<p>But of course, there are risks involved, too.</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/real-wage-growth-new-york-fed-research-2016-9" >A reminder that you really need to get as many raises as you can before you turn 40</a></strong></p>
<p><a href="http://www.businessinsider.com/credit-card-issuance-climbs-to-pre-financial-crisis-levels-2016-10#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/trade-war-intelligent-investing-economic-growth-companies-tech-2018-3">Trade war fears are escalating — here's who has the most to lose</a></p> http://www.businessinsider.com/6-reasons-the-us-stock-market-is-doomed-2016-96 reasons the US stock market is doomedhttp://www.businessinsider.com/6-reasons-the-us-stock-market-is-doomed-2016-9
Sun, 18 Sep 2016 09:09:00 -0400Tony Sagami
<p><img style="float:right;" src="http://static5.businessinsider.com/image/572b7a45dd0895896e8b46ad-2000/emerson tung - vortex.jpg" alt="Doom (concept art)" data-mce-source="Emerson Tung / id Software" /></p><p>The Dow Jones Industrial Average has been going sideways ever since the Commerce Department reported that retail sales in July came to a grinding halt (0.0%).</p>
<p>At the same time, companies including Starbucks, McDonald&rsquo;s, Ford, Burberry, and Gap are reporting disappointing sales. That means <a href="http://www.mauldineconomics.com/connecting-the-dots/6-warning-signs-that-the-economy-is-in-trouble">trouble in shopping paradise</a>.</p>
<p>Target just reported a Q2 drop of 1.1% in same-store sales. It expects a &ldquo;challenging environment in the back half of the year.&rdquo;</p>
<p>There are many reasons why Americans have become reluctant shoppers. I talked about this in my recent article &ldquo;<a href="http://www.mauldineconomics.com/connecting-the-dots/the-stressed-out-tapped-out-american-consumer">The Stressed-Out, Tapped-Out American Consumer</a>.&rdquo; Stagnant incomes and rising debt loads are part of the problem.</p>
<p>But another big factor is a change in spending psychology.</p>
<h3>&nbsp;</h3>
<p>&nbsp;</p><h3>The save vs. spend mindset has shifted.</h3>
<img src="http://static3.businessinsider.com/image/57d9b6d0077dcc67208b4da1-400-300/the-save-vs-spend-mindset-has-shifted.jpg" alt="" />
<p><p>Americans are becoming big savers, according to Deutsche Bank,.</p>
<p>&nbsp;</p></p>
<br/><br/><h3>The save vs. spend mindset has shifted for all adults. But this change is most dramatic for Millennials.</h3>
<img src="http://static4.businessinsider.com/image/57d9b734077dcc1e008b5f37-400-300/the-save-vs-spend-mindset-has-shifted-for-all-adults-but-this-change-is-most-dramatic-for-millennials.jpg" alt="" />
<br/><br/><h3>Transport of goods is slowing.</h3>
<img src="http://static3.businessinsider.com/image/57d9b784077dcc1e008b5f39-400-300/transport-of-goods-is-slowing.jpg" alt="" />
<p><p>Evidence of shopping fatigue is also showing up in the transportation food chain.</p>
<p>Truck shipments continue to decline. July shipments were down versus 2015, 2014, 2012, and 2011.</p>
<p>&nbsp;</p></p>
<br/><br/><a href="http://www.businessinsider.com/6-reasons-the-us-stock-market-is-doomed-2016-9#/#shipping-is-slowing-too-4">See the rest of the story at Business Insider</a> http://www.businessinsider.com/bank-of-america-ceo-brian-moynihan-us-consumer-in-good-shape-2016-9BANK OF AMERICA CEO: The most important part of the US economy is in 'good shape'http://www.businessinsider.com/bank-of-america-ceo-brian-moynihan-us-consumer-in-good-shape-2016-9
Thu, 08 Sep 2016 10:49:22 -0400Bob Bryan
<p><img style="float:right;" src="http://static2.businessinsider.com/image/56006b749dd7cc22008bbf8e-2204/rtr3eq30.jpg" alt="brian moynihan" data-mce-source="REUTERS / Bobby Yip" data-mce-caption="Brian Moynihan" /></p><p>Bank of America Merrill Lynch CEO Brian Moynihan has confidence in the American consumer.</p>
<p>In an interview with CNBC's Wilfred Frost, Moynihan said that based on BAML's credit and debit card data, consumers are spending plenty of money. This, in turn, paints a&nbsp;strong economic picture.</p>
<p>"The year-to-date consumers on our debit and credit cards are spending 4.7% more than they did last year and the pace is accelerating," said Moynihan. "So, the consumer is in very good shape credit quality wise, spending wise."</p>
<p>Additionally, Moynihan said that possible stumbling blocks for&nbsp;consumer confidence&nbsp;don't seem to be materializing. Here's Moynihan:</p>
<p style="padding-left: 30px;">"And if you thought about what could slow them down, it'd be confidence in the markets. Those seem to be in good shape. It could be confidence in the economy, not growing as fast as we want but continuing to grow. Unemployment levels. 'Am I going to have a job? Am I going to get paid more?' You're seeing wage growth. Not, again, what people would like to see, but in the twos. Unemployment's staying low. So, the consumer's very constructive."</p>
<p>Moynihan's argument is strong given that consumer confidence is <a href="http://www.businessinsider.com/here-comes-consumer-confidence-2016-8">near its&nbsp;highest level</a> since the end of the recession, the stock market is <a href="http://www.businessinsider.com/closing-bell-september-7-2016-2016-9">near all-time highs</a>, wages are <a href="http://www.businessinsider.com/average-hourly-earnings-growth-august-2016-9">growing at the fastest pace</a> of the recovery, and the&nbsp;<a href="http://www.businessinsider.com/us-jobs-report-august-2016-2016-9">unemployment rate is below 5%.</a></p>
<p>In Moynihan's view the good news is only getting better, as consumer spending on BAML's cards is&nbsp;getting stronger as the year goes on.</p>
<p>"Well, as you look at the month of August, which we just got the final details on, it'll be the strongest consumer spending growth in debit and credit cards year over year this year," said Moynihan to CNBC.</p>
<p>Given that consumption makes up roughly 70% of the US economy, increased spending is good news for economic growth and hearing it from the CEO of one of the country's largest banks is certainly encouraging.</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/adam-parker-4-reasons-why-stock-market-can-still-head-higher-2016-9" >Morgan Stanley's top stock strategist has 4 reasons the stock market is going a lot higher</a></strong></p>
<p><a href="http://www.businessinsider.com/bank-of-america-ceo-brian-moynihan-us-consumer-in-good-shape-2016-9#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/cut-cable-directv-now-streaming-cord-cutting-youtube-tv-hulu-sling-2018-3">I quit cable for DirecTV Now and it's saving me over $1,000 a year — here's how I did it</a></p> http://www.businessinsider.com/chinese-craze-for-japanese-diapers-tells-us-about-emerging-markets-2016-7China's obsession over these Japanese diapers can tell us a lot about emerging marketshttp://www.businessinsider.com/chinese-craze-for-japanese-diapers-tells-us-about-emerging-markets-2016-7
Thu, 28 Jul 2016 21:00:00 -0400Sammy Suzuki
<p><img style="float:right;" src="http://static3.businessinsider.com/image/579a097a4321f102278bb4b4-2400/rtr3je7r.jpg" alt="japan diapers merries" data-mce-source="REUTERS/Yuya Shino" data-mce-caption="Kao Corp's 'Merries' brand diapers (C) are seen on display with other diaper brands at an Aeon Co Ltd's supermarket outlet in Chiba, east of Tokyo, March 31, 2014." /></p><p>The Chinese craze for pricey Japanese-made diapers may change the way you think about investing in developing economies. It&rsquo;s just one of the many enduring trends we see incubating the next generation of emerging-market winners.</p>
<p>We&rsquo;re keeping a close eye on the evolving shopping habits of the growing emerging-market middle class, which is showing a voracious appetite for premium-priced, upscale goods. Not only does this trend reveal valuable clues about future consumer-spending patterns, but it also shows that the best plays in emerging equities are not necessarily homegrown.</p>
<h2><strong>NOTHING BUT THE BEST</strong></h2>
<p>For the past few years, affluent Chinese parents have insisted on swaddling their babies in Merries brand disposable diapers, made by Japanese company Kao Corp. Not only that, they&rsquo;ve been paying a lot more for Japan-made diapers than for a similar product made by Kao&rsquo;s Chinese factory (<em>Display</em>).</p>
<p><img src="http://static4.businessinsider.com/image/579a06cb4321f1480f8bb6cb-800/graph-1.gif" alt="graph 1" data-mce-source="Context | The AB Blog on Investing" /></p>
<p>A little background: Procter &amp; Gamble entered the Chinese market in 1998 with its Pampers brand. After a few missteps&mdash;mostly owing to the low quality of its initial product and the resistance of Chinese parents to the idea of disposable diapers&mdash;the market took off in 2007 when P&amp;G introduced its &ldquo;Golden Sleep&rdquo; campaign that tied disposable diapers to sleep quality and improved child development.</p>
<p>Several other companies followed, including Japan&rsquo;s Unicharm (in 2000) and Kimberly Clark (via a Korean joint venture in 2003). Kao was the last major global player to enter the market, only setting up shop in 2009.</p>
<p>As demand for disposable diapers has soared (<em>Display</em>), relative latecomer Kao has seen its market share in China surge, even while leading player Procter &amp; Gamble (P&amp;G) and local company Hengan International have lost ground (<em>Display</em>). And the Chinese appetite for Merries helped drive a nearly threefold increase in profits at Kao&rsquo;s Human Health Care Business between 2012 and 2015.</p>
<p><img src="http://static3.businessinsider.com/image/579a07094321f1f5018bb6b3-800/graph-2.gif" alt="graph 2" data-mce-source="Context | The AB Blog on Investing" /></p>
<p><img src="http://static4.businessinsider.com/image/579a07154321f1362f8badd6-800/graph-3.gif" alt="graph 3" data-mce-source="Context | The AB Blog on Investing" /></p>
<h2><strong>EMERGING MIDDLE-CLASS TRENDS</strong></h2>
<p>What does this mean for investors who are trying to understand the new emerging-market landscape? We spot three key themes:</p>
<ul id="U20662271279AfE">
<li><strong>Premiumization</strong>. The desire for upmarket products is abundantly evident among the growing middle class in China, and it is breathing new life into the sales of many Western brands&mdash;from US-made Steinway pianos and Mattel Barbie dolls to Italy&rsquo;s La Perla lingerie. <br /><br />But, as the diaper wars show, the trend goes beyond the luxury markets. While P&amp;G pioneered the disposable diaper market in China, it has continued to target the mass consumer, relying on local production to manufacture lower-priced diapers. By contrast, Kao has focused on the premium niche. With its touted superabsorbent polymer technology&mdash;not to mention the &ldquo;Made in Japan&rdquo; label, which seems to guarantee authenticity&mdash;the Merries diaper has become a coveted brand among higher-end consumers. In fact, an estimated 90% of Kao&rsquo;s sales come from premium products, versus 25% for P&amp;G and 40% for Unicharm.</li>
<li><strong>The best China plays aren&rsquo;t necessarily Chinese</strong>. As consumer demand shifts toward more premium products&mdash;and as questions continue to arise about product authenticity&mdash;there may be an increasing number of attractive competitive opportunities for non-Chinese companies with manufacturing located outside of the country. We expect to see similar cases pop up across emerging-market economies, providing investors with what may be a better way to tap into local growth.</li>
<li><strong>E-commerce on the rise</strong>. Kao began focusing on the online channel at the very moment when e-commerce was growing rapidly at the expense of traditional channels. The Chinese are avid online&mdash;and increasingly mobile-phone&mdash; shoppers. According to a proprietary Bernstein Research survey, e-commerce penetration of the Chinese household and personal care category rose from just 3% in 2013 to 21% in 2015. And the online channel is particularly appealing to higher-end consumers, owing to its convenience, higher likelihood of product authenticity (a major concern in China) and broader product assortment.</li>
</ul>
<p>New eras call for new game plans. Emerging economies look very different today than they did not that long ago, and dramatic changes are rapidly unfolding. That means what worked for investors in the last decade isn&rsquo;t likely to succeed in the years ahead. So, throw away your preconceived notions. Don&rsquo;t assume the mass market is where the action is. Pay attention to trends in e-commerce. And, maybe most important, look beyond the borders for the success stories of tomorrow.</p>
<p><em>This blog was originally published in <a href="http://www.institutionalinvestor.com/gmtl/3572820/emerging-markets-game-changer-diaper-wars-in-china.html#.V5iz5TcUXOg">InstitutionalInvestor.com</a></em>.</p>
<p><em>The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams.</em></p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/r-coca-cola-quarterly-revenue-drops-51-percent-2016-7" >Coca-Cola's quarterly sales dropped because of 'difficult external conditions'</a></strong></p>
<p><a href="http://www.businessinsider.com/chinese-craze-for-japanese-diapers-tells-us-about-emerging-markets-2016-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/tesla-model-3-best-worst-features-elon-musk-2018-2">The best and worst things about the Tesla Model 3</a></p> http://www.businessinsider.com/americans-are-becoming-too-poor-to-shop-2016-7Americans are becoming too poor to shophttp://www.businessinsider.com/americans-are-becoming-too-poor-to-shop-2016-7
Sun, 24 Jul 2016 17:06:00 -0400Tony Sagami
<p><img style="float:right;" src="http://static6.businessinsider.com/image/5792108688e4a7531b8b9e07-1156/walmart-checkout-cashier-shopping.jpg" alt="walmart checkout cashier shopping" data-mce-source="Joe Raedle / Staff / Getty Images" /></p><p>We are entering the heart of earnings season. It may be a wild one as Wall Street&rsquo;s outlook is quite poor.</p>
<p>The consensus Wall Street estimates for Q2 profits of the S&amp;P 500 is a 5.6% fall (YOY). That would be the fifth quarter in a row of falling corporate profits.</p>
<p>The retail industry is particularly vulnerable. (<a href="http://www.mauldineconomics.com/subscribe-connecting-the-dots">I&rsquo;ve written about that a lot in my free weekly column, <em>Connecting the Dots</em>,</a> at <a href="http://www.mauldineconomics.com/">Mauldin Economics</a>.)&nbsp;<a href="http://www.mauldineconomics.com/connecting-the-dots/kiss-christmas-and-retail-stocks-goodbye">Many retailers who&rsquo;ve previously reported dismal results</a> warn that the rest of the year will be even worse.</p>
<p>In May, retail sales shrunk by 3.9%, worsening from a 2.9% drop in April.</p>
<p>Moody's Investors Service lowered its estimates for 2016 retail sales. The tone of their overall outlook shifted from &ldquo;positive&rdquo; to &ldquo;stable&rdquo;:</p>
<p>We have scaled back our growth and outlook expectations for the US retail industry primarily due to weakness in four sub-sectors: apparel and footwear, discounters and warehouse clubs, department stores, and office supplies.</p>
<p>Bank of America&mdash;which knows a thing or two about credit card usage&mdash;said its debit and credit cards data showed particular weakness in four retail areas:</p>
<ul>
<li>Department stores: down 4.0%</li>
<li>Teen/young adult stores: down 4.6%</li>
<li>Home goods: down 3.6%</li>
<li>Electronics: down 3.0%</li>
</ul>
<h2><strong>Most Americans stopped shopping</strong></h2>
<p>Discouraging retail results are the result of many developments. One of the more surprising culprits, however, is a growing number of Americans who just can&rsquo;t afford it.</p>
<p><img src="http://static3.businessinsider.com/image/57920d4288e4a725238b9d1f-800/graph-1.gif" alt="graph 1" data-mce-source="Mauldin Economics" /></p>
<p>More than 20%, or 26 million Americans, are simply too poor to shop, according to America&rsquo;s Research Group (ARG).</p>
<p>We all know about the 47% of Americans that get government benefits. Politicians, however, largely overlooked another 26 million Americans that are the working poor.</p>
<p>This class works an average two to three jobs and pulls in less than $30,000 of annual income.</p>
<p><img src="http://static2.businessinsider.com/image/57920d5488e4a77c708b9a0a-800/graph-2.gif" alt="graph 2" data-mce-source="Mauldin Economics" /></p>
<p>Even those fortunate enough to make more than that are struggling. Nearly half of Americans have not seen an increase in salary over the last five years. Higher medical insurance deductions reduced take-home pay for another 28%.</p>
<p>As a result, &ldquo;The poorest Americans have stopped shopping, except for necessities,&rdquo; said Britt Beemer of America&rsquo;s Research Group.</p>
<p>It gets worse. Even finding money to pay for necessities is a struggle. <a href="http://www.mauldineconomics.com/connecting-the-dots/a-thrifty-opportunity-for-investors">Two-thirds of Americans have essentially zero savings.</a> 47% of Americans wouldn&rsquo;t be able to gather $400 for a doctor visit without reaching out to friends.</p>
<h2><strong>Investment Implications</strong></h2>
<p>That gloomy news doesn&rsquo;t mean you have to pass on all retailers. Cash-strapped American consumers are increasingly turning to discount retailers. And they are doing very well.</p>
<p>For example, Dollar General (NYSE:DG) has been on fire due to strong profit growth. In the last quarter, Dollar General beat the pants off Wall Street&rsquo;s expectations of $0.94 of profit by delivering $1.03 per share.</p>
<p><img src="http://static3.businessinsider.com/image/57920d6688e4a78c148b9f7c-800/graph-3.gif" alt="graph 3" data-mce-source="Mauldin Economics" /></p>
<p>That was 22% above last year&rsquo;s first quarter and the fifth quarter in a row that Dollar General exceeded forecasts.</p>
<p>That tells me one thing: catering to cash-strapped Americans can make big profits.</p>
<p>Oh, and for you dividend lovers, Dollar General pays a $1.00 annual dividend.</p>
<p>Other discount retailers that enjoy strong business include: Dollar Tree (DLTR), Big Lots (BIG), TJX Companies (TJX), Wal-Mart (WMT), and Costco (COST).</p>
<p>That doesn&rsquo;t mean you should rush out and buy any of these stocks tomorrow morning. As always, timing is everything. Discount retailers, however, are one of the few bright spots in the retail industry worth your consideration.</p>
<h3><strong>Subscribe to Tony&rsquo;s Actionable Investment Advice</strong></h3>
<p>Markets rise or fall each day, but when reporting the reasons, the financial media rarely provides investors with a complete picture. Tony Sagami shows you the real story behind the week&rsquo;s market news in his <a href="http://www.mauldineconomics.com/subscribe-connecting-the-dots" target="_blank">free weekly newsletter, <em>Connecting the Dots.</em></a></p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/americans-are-gloomy-about-the-future-2016-7" >Americans are 'gloomy' about the future</a></strong></p>
<p><a href="http://www.businessinsider.com/americans-are-becoming-too-poor-to-shop-2016-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/cut-cable-directv-now-streaming-cord-cutting-youtube-tv-hulu-sling-2018-3">I quit cable for DirecTV Now and it's saving me over $1,000 a year — here's how I did it</a></p> http://www.businessinsider.com/americas-shrinking-middle-class-hurts-economy-2016-6America's shrinking middle class is killing the economyhttp://www.businessinsider.com/americas-shrinking-middle-class-hurts-economy-2016-6
Mon, 04 Jul 2016 14:54:00 -0400Business Insider
<p>The&nbsp;middle-income class&nbsp;is&nbsp;hollowing out, and it's hurting US economic growth.</p>
<p>Only about a quarter of a percent&nbsp;of US households have climbed up the ladder from the middle class into the&nbsp;upper-income bracket since 2000, according to the <a href="http://www.imf.org/external/pubs/ft/wp/2016/wp16121.pdf">latest review by the IMF</a>. Meanwhile,<span>&nbsp;more than 3% of middle-income households have moved&nbsp;into the low-income bracket. </span></p>
<p><span>That's a flip from the trend between 1970 and 2000, where&nbsp;<span>middle-income households were more likely to move upward.</span></span></p>
<p>Here is the International Monetary Fund on the issue (emphasis added):<br /><span></span></p>
<p style="padding-left: 30px;"><span>Combined with real income stagnation, polarization has had a negative impact on the economy, hampering the main engine of the U.S. growth: consumption. The analysis in our new </span><a href="http://www.imf.org/external/pubs/cat/longres.aspx?sk=44031.0">paper</a><span> suggests that over 1998&ndash;2013, <strong>the U.S. economy has lost the equivalent of more than one year of consumption due to increased polarization.</strong></span><br /><span></span></p>
<p><span>That's a pretty worrying trend, considering that<span>&nbsp;low- and middle-income households spend a far larger slice&nbsp;of their income than&nbsp;wealthier households.<br /><img src="http://static5.businessinsider.com/image/5772eb8a88e4a77c708b457b-1224/imf1.jpg" alt="imf1" data-mce-source="IMF" /></span><br />The&nbsp;IMF defined middle-income households &mdash; which is&nbsp;often a proxy for discussions on income&nbsp;polarization &mdash; as those whose real incomes are within 50% to 150% of the median income.</span></p>
<p><span>The share of middle-income households has shrunk to 47% in 2014 from 58% in 1970, while lower-income households' share was little changed at around 5% of total national income, the IMF report shows.</span></p>
<p>Consumers are a huge driver&nbsp;of the American economy, with household consumption making up <a href="http://www.businessinsider.com/survey-of-consumer-expectations-spending-april-2016-2016-5">more than two-thirds of GDP</a>. We have already seen&nbsp;grim notes of how&nbsp;the<span>&nbsp;<a href="http://www.businessinsider.com/ubs-credit-note-us-consumer-2016-6">more concentrated pool of wealth</a> is affecting the creditworthiness of an average borrower.</span></p>
<p><span>It's not just the super rich who are at fault for the increased polarization, however. The number&nbsp;of men who have taken lower-paid jobs has&nbsp;shot up over the past four decades while that of women edged up,&nbsp;<span>according to the IMF.</span></span></p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/ubs-credit-note-us-consumer-2016-6" >This is the best research we've seen on the state of the US consumer, and it makes for a grim reading</a></strong></p>
<p><a href="http://www.businessinsider.com/americas-shrinking-middle-class-hurts-economy-2016-6#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/jim-chanos-is-worried-about-the-economy-but-not-because-of-inflation-2018-2">Jim Chanos is worried about the economy, but not because of inflation</a></p> http://www.businessinsider.com/americas-shrinking-middle-class-hurts-economy-2016-6America's shrinking middle class is killing the economyhttp://www.businessinsider.com/americas-shrinking-middle-class-hurts-economy-2016-6
Tue, 28 Jun 2016 17:52:35 -0400Rachel Butt
<p>The&nbsp;middle-income class&nbsp;is&nbsp;hollowing out, and it's hurting US economic growth.</p>
<p>Only about a quarter of a percent&nbsp;of US households have climbed up the ladder from the middle class into the&nbsp;upper-income bracket since 2000, according to the <a href="http://www.imf.org/external/pubs/ft/wp/2016/wp16121.pdf">latest review by the IMF</a>. Meanwhile,<span>&nbsp;more than 3% of middle-income households have moved&nbsp;into the low-income bracket. </span></p>
<p><span>That's a flip from the trend between 1970 and 2000, where&nbsp;<span>middle-income households were more likely to move upward.</span></span></p>
<p>Here is the International Monetary Fund on the issue (emphasis added):<br /><span></span></p>
<p style="padding-left: 30px;"><span>Combined with real income stagnation, polarization has had a negative impact on the economy, hampering the main engine of the U.S. growth: consumption. The analysis in our new </span><a href="http://www.imf.org/external/pubs/cat/longres.aspx?sk=44031.0">paper</a><span> suggests that over 1998&ndash;2013, <strong>the U.S. economy has lost the equivalent of more than one year of consumption due to increased polarization.</strong></span><br /><span></span></p>
<p><span>That's a pretty worrying trend, considering that<span>&nbsp;low- and middle-income households spend a far larger slice&nbsp;of their income than&nbsp;wealthier households.<br /><img src="http://static5.businessinsider.com/image/5772eb8a88e4a77c708b457b-1224/imf1.jpg" alt="imf1" data-mce-source="IMF" /></span><br />The&nbsp;IMF defined middle-income households &mdash; which is&nbsp;often a proxy for discussions on income&nbsp;polarization &mdash; as those whose real incomes are within 50% to 150% of the median income.</span></p>
<p><span>The share of middle-income households has shrunk to 47% in 2014 from 58% in 1970, while lower-income households' share was little changed at around 5% of total national income, the IMF report shows.</span></p>
<p>Consumers are a huge driver&nbsp;of the American economy, with household consumption making up <a href="http://www.businessinsider.com/survey-of-consumer-expectations-spending-april-2016-2016-5">more than two-thirds of GDP</a>. We have already seen&nbsp;grim notes of how&nbsp;the<span>&nbsp;<a href="http://www.businessinsider.com/ubs-credit-note-us-consumer-2016-6">more concentrated pool of wealth</a> is affecting the creditworthiness of an average borrower.</span></p>
<p><span>It's not just the super rich who are at fault for the increased polarization, however. The number&nbsp;of men who have taken lower-paid jobs has&nbsp;shot up over the past four decades while that of women edged up,&nbsp;<span>according to the IMF.</span></span></p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/ubs-credit-note-us-consumer-2016-6" >This is the best research we've seen on the state of the US consumer, and it makes for a grim reading</a></strong></p>
<p><a href="http://www.businessinsider.com/americas-shrinking-middle-class-hurts-economy-2016-6#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="http://www.businessinsider.com/henry-blodget-major-correction-valuations-2018-2">Henry Blodget: This could be exactly what the start of a major correction looks like</a></p> http://www.businessinsider.com/facebook-security-identity-theft-compromise-2016-6This is how you're compromising your identity on Facebookhttp://www.businessinsider.com/facebook-security-identity-theft-compromise-2016-6
Fri, 10 Jun 2016 12:07:00 -0400Eames Yates
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<p>The threat of identity theft is very real on the internet and social media platforms.</p>
<p><span style="line-height: 1.5em;">Adam Levin, author of </span><a href="http://www.amazon.com/Swiped-Yourself-Scammers-Phishers-Identity/dp/1610395875/ref=sr_1_1?ie=UTF8&amp;qid=1448401646&amp;sr=8-1&amp;keywords=swiped">"Swiped: How to Protect Yourself in a World Full of Scammers, Phishers, and Identity Thieves"</a><span style="line-height: 1.5em;"> explains what you can do to protect yourself. </span></p>
<p><em>Produced by <a href="http://www.businessinsider.com/author/eames-yates">Eames Yates</a><br></em></p>
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